Outsourced logistics relationship management

Challenge

For a large computer manufacturer, we developed a new cross-business unit strategy and action plan to better manage a key logistics provider. The client suspected that the 3PL was not adequately supporting different businesses, given an uncoordinated approach and multiple contracts spread across three business units, numerous sites, varying activities and different pricing.

Approach

• Assessed all aspects of the client-3PL relationship.
• Determined future roles and management structure.
• Identified selected process improvements.
• Modeled the provider’s profitability under existing contracts.
• Developed alternative pricing and incentive structures.
• Prepared an action plan to implement the new strategy.

Results

• Recommended a new structure for companywide integrated management of major logistics suppliers.
• Developed new pricing approach and target price levels for negotiations with this key provider.